Under the policy of the 'One Country, Two Systems', Hong Kong enjoys a considerable degree of autonomy from the Mainland, continuing to have its own currency, customs and immigration, legal system, and even its own rule of the road, with traffic continuing to drive on the left.

中華人民共和國香港特別行政區Hong Kong Special Administrative Region of the People's Republic of China

Although it was occupied since at least the Neolithic Age, the territory of today's Hong Kong remained adistant from the major events unfolding in imperial China for most of its history. It started attracting worldwide attention in the 19th century.

In the agreement, the PRC promised that, under the "One Country, Two Systems" policy proposed by Deng Xiaoping, China's socialist economic system will not be practised in Hong Kong and that Hong Kong will enjoy a high degree of autonomy in all matters, except foreign affairs and defence, for 50 years, until 2047.

The Hong Kong Special Administrative Region is headed by Chief ExecutiveTung Chee Hwa as head of government. Mr. Tung assumed office on July 1, 1997, following his election by a 400-member committee appointed by the People's Republic of China, whose president serves as head of state for the Hong Kong SAR. Legislative Council elections were held in May 1998 and again in September 2000. According to the Basic Law, Hong Kong's "Mini-constitution," the Legislative Council has 24 directly elected members; 30 members elected by functional (occupational) constituencies and 6 elected by an Election Committee.

The 1998 and 2000 Legislative Council elections were seen as free, open, and widely contested, despite discontent among mainly pro-democracy politicians that the functional constituencies and Election Committee elections are essentially undemocratic because so few voters are eligible to vote. The Civil Service maintains its quality and neutrality, operating without discernible direction from Beijing.

The name "Hong Kong" is derived from Hong Kong Island in the South China Sea, at the mouth of the Xi Jiang or Pearl River of southern China. Other territories that were later added include the Kowloon Peninsula and the New Territories, which include over 200 surrounding islands. The landscape is fairly hilly to mountainous with steep slopes, with the highest point being the Tai Mo Shan at 958 m, though lowlands exist in the north.

Of the total of 1,092 km² of Hong Kong, only 25% are developed. The remaining 75% are set aside as a countryside and preservation area.

The local climate is that of a tropicalmonsoon clime. It is cool and humid in winter, hot and rainy from spring through summer, and warm and sunny in fall. Hong Kong is visited by occasional typhoons.

Hong Kong has a bustling free market economy highly dependent on international trade. Natural resources are limited, and food and raw materials must be imported. Indeed, imports and exports, including re-exports, each exceed GDP in dollar value. Even before Hong Kong reverted to Chinese administration on July 1, 1997 it had extensive trade and investment ties with the People's Republic of China. The service industry represented 86.5% of the GDP in 2001, and the territory, with a highly sophisticated banking sector, has housed the Asian headquarters of many multinational corporations in the last decades.

Per capita GDP compares with the level in the four big economies of Western Europe. GDP growth averaged a strong 5% in 1989-1997. The widespread Asian economic difficulties in 1998 hit this trade-dependent economy quite hard, with GDP down 5%. The economy, with growth of 10% in 2000, recovered rapidly from the Asian financial crisis. The recent global downturn has badly hurt Hong Kong's exports and GDP growth was 2.3% in 2002.

The main airport, Hong Kong International Airport (HKIA), is located on a partly artificial island connected to Lantau Island. The airport is often called Chek Lap Kok Airport, after one of the islands it was built on. HKIA is the replacement for the older Kai Tak Airport, which was known for its spectacular urban approach. Kai Tak was retired after Chek Lap Kok was built and now serves as an recreational venue.

In early 2003, the local economy was hardly hit by the outbreak the Severe acute respiratory syndrome (SARS). On June 29, 2003, the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) was signed. CEPA allows Hong Kong service providers in 18 areas to enter the mainland market at least one year ahead of their foreign competitors. The arrangement provides a platform for Hong Kong professionals to practice on the mainland and also allows Hong Kong permanent residents to set up individually owned retail stores in Guangdong Province. Experts suggest the economies of the mainland, Hong Kong, Macao and Taiwan should join hands to capitalize on the opportunities provided by CEPA.

Despite the population density, Hong Kong was reported to be one of the greenest cities in Asia. The majority of people live in flats in high-rise buildings. The rest of the open spaces are often covered with parks, woods and shrubs. The vertical placement of the population explains why densely populated, green city is not an oxymoronic phrase.